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Someone asked me why did I say that 21c is technically a strong support for the REIT. I didn't take the time to elaborate on this last night. It is where the rising 50wMA is approximating.
I put in an overnight buy queue at 21c which was filled when the session today started. In spite of massive selling pressure, price closed down one bid only at 21.5c. The selling pressure is well absorbed as the REIT's unit price demonstrated admirable resilience.
I, however, am not entertaining any grand delusions that price might not weaken further once the counter goes XD. Using Fibo lines gives us a clue as to where the supports would be next. 20.5c is where we find 123.6% and 20c is where we find 138.2% as well as 150% (which is at 19.8c). As both 38.2% and 50% are golden ratios, I expect 20c to be a very strong support level if ever tested.
When would I consider selling my investment in the REIT? Well, I still have a fair value estimate of 25c per unit as the latest development has minimal impact on the numbers I came up with last year in December. So, I am not a seller at the current level but I am definitely a buyer.
As an assurance that the REIT's financial health is not taking a turn for the worse, Moody's Investors Service says Ba2 rating for the REIT, which incorporates some financial flexibility, is appropriate. Read report dated 15 Feb 2011 here.
Related post:
AIMS AMP Capital Industrial REIT: Acquisition of Northtech.
STI off 1.0%; fund flows back to developed markets - Kim Eng
Tuesday, 15 February 2011
Tuesday, 15 February 2011
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